Canada taking fight with U.S. over softwood lumber duties to WTO

The federal governmentis launching litigation via theWorld Trade Organization over anti-dumping and countervailing duties theU.S. Department ofCommerce has set onsoftwood lumber imports from Canada.

"The U.S. Department of Commerce's decision to impose punitive anti-dumping and countervailing duties on Canadian softwood lumber producers is unfair, unwarranted and deeply troubling," according to a statement issued Tuesday by Global Affairs Canada.

The Canadian government said it has requested consultations with the U.S. under the WTO.

"We will forcefully defend Canada's softwood lumber industry," the government said in its statement.

Canada has already challengedthe countervailing duties under Chapter 19 of the North American Free Trade Agreement.

• U.S. sets final import duties on Canadian softwood lumber

The U.S. government said on Nov. 2 that it made a final determination to impose duties on Canadian softwood imports, claiming producers here were selling into the U.S. market at less than fair value, and that Canada provides"unfair subsidies" to domestic producers.

U.S. government claimed that exporters from Canada sold softwood lumber in the U.S. market at 3.20 per cent to 8.89 per cent less than fair value. The Commerce Department also saidCanada is providing unfair subsidies to its producers of softwood lumber at rates from 3.34 per cent to 18.19 per cent.